A good year as expected. Nestle's full-year net profit of RM456m, up 17%
YoY, was within our and consensus expectations. Growth was primarily
sales-driven, while margins were stable. Although we continue to like
Nestle for its strong franchise, valuations are not cheap, with the
stock trading at a prospective 2012 PER of 26x, while yields are just
about fair at 3.6%. Our Sell call is maintained, but with a raised
target price of RM52.40 on rolling forward our DCF valuations.
Maybank Research - 24 Feb 2012
Click here for full report
No comments:
Post a Comment